NewsWhat will be the fate of the Airport

What will be the fate of the Airport

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Whether and when the Montenegrin airports will be put under concession – it is not yet known. The Ministry of Capital Investments (MKI) did not specify whether, in the technical mandate, the Government will continue the concession process, which was started four years ago, but they stated that the existing process, which was started earlier, must be reviewed and the newly created situation on the market analyzed, as well as that it is necessary to update the traffic development strategy and create planning documents.

The department headed by Ervin Ibrahimović did not answer whether the Government is in contact with bidders who have passed the pre-qualification procedure.

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When making such an important decision, which will affect the economy in the long term, it is necessary to look at the situation two years later. When we say that, we mean all the changes that have occurred on the market, and in that part we share the position that the existing concession arrangement must be reviewed and the newly created situation analyzed.

They pointed out that the existing airport development master plan dates from 2011 and that it is necessary to update the traffic development strategy, and the development of planning documents at the national level is underway.

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Our intention is to take advantage of the opportunity to first create the conditions for this project to be managed with quality and successfully through interdepartmental and sectoral cooperation, so that in the end the benefits will be felt by everyone, both our citizens and the tourism industry – announced from the Ministry of Interior, reminding that previous administrations were accused of moving into strategic projects without a clear vision.

On July 25th, 2019, the government of Duško Marković adopted a concession act and a contract for granting a concession for the use of Tivat and Podogrica airports. The concession deed provided for EUR 100 million in one-time compensation for the budget and EUR 200 million in investments over the next 30 years. On October 11th, 2019, the then Minister of Transport Osman Nurković announced a pre-qualification tender for airports, which received seven applications. Four remained in the game – South Korea’s Incheon International Airport, India’s GMR Airports, which later gave up, Luxembourg’s Corporacion America Airports and the Franco-Turkish consortium ADP-TAV.

At the end of October 2021, three bidders, who previously passed the pre-qualification tender, presented themselves and their plans regarding Montenegrin airports to representatives of the Government of Zdravko Krivokapić. The relevant minister at the time, Mladen Bojanić, announced that the interest of potential concessionaires in airports has not subsided despite the corona virus pandemic.

MKI recalled that the Government was looking for a partner with established experience in airport operations in order to lead to the improvement of airport operations and services for passengers, as well as for the financing of a major upgrade of the airport infrastructure. That partner would be obliged to guarantee a high level of passenger services in accordance with the IATA optimal level – expedited check-in, faster security checks and passport controls, adequate seating space, faster baggage claim and reduced overall waiting time.

The current executive director of the Airport of Montenegro, Vladan Drašković, gives priority to state ownership of airports, while the newest relevant minister, Goran Đurović, believes that this year we should decide as soon as possible what we will do with the airports.

If we decide that the airports remain state-owned, we must find several hundred million to invest, and I am not sure that we have that money. I believe that our airports can be of better quality with better investment and management that will know how to implement it – Đurović said earlier.

Prime Minister in technical mandate Dritan Abazović believes that better concession conditions for the state can be achieved, regardless of whether they will negotiate with qualified bidders or whether the current tender should be canceled and a new tender called. The State Secretary at the MKI, Admir Šahmanović, reminds that the public call for the concession award was announced in accordance with the old law on concessions from 2009, and that a new one was adopted in the meantime, which does not provide for the granting of concessions in that area.

The only solution would be to model it in relation to the Law on Private-Public Partnership – claimed Šahmanović.

 

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